Overview of the processed meat industry
The global processed meat industry comprises of subcategories including processed lunch meat, bacon, frankfurters, dinner sausages, packaged meals, hams and processed turkey.
The global processed meat industry is expected to witness high gains in light of increasing demand for processed meat coupled with increasing disposable income in emerging countries. Additionally, the rising consumer awareness in terms of following an animal protein-rich diet and the availability of numerous varieties of processed meat in the market at lesser prices is further expected to boost the demand for processed meat.
However, our analysis of the food and beverage space shows that the processed meat industry manufacturers are facing challenges in terms of:
- Rising costs of raw materials: The processed meat industry is continuously battling ebbs and flows. Additionally, it is difficult for players in this market to predict market volatility, which means that the pricing.
- Innovation: For companies in the processed meat industry, it is vital to innovate if they want to stay relevant in the marketplace. Innovation and flexibility is the answer to changing consumer trends. So companies not only need to look at a variety of products and packaging sizes, but also innovation in their process facilities.
Many such factors are compelling firms in the processed meat industry to leverage the use of spend analysis solutions. Spend analysis solutions help firms identify single-sourced items and develop a robust supplier base to ensure the availability of critical items. Not only does spend analysis provide knowledge into an organization’s procurement activities and expenditures, it also allows the organization to identify areas for process improvement and cost reduction.
The Business Challenge and Journey
Client background: A leading manufacturer of processed meat with manufacturing units spread across geographies wanted to categorize and classify spend data accurately. They also wanted to rationalize suppliers and focus not just on the quality of products supplied but ensure sustainable supply with limited risk to the enterprise.
Client issue: Procurement was a decentralized function, and this meant that the information was not centrally available and was unstructured. Every manufacturing plant and department managed procurement independently, and there was minimal transparency and lack of granularity in their data and reporting.
SpendEdge’s spend analysis experts tailored a two-step research methodology, which included qualitative and quantitative data collection methods to categorize and classify spend data accurately. The experts also collected information from a wide array of reliable secondary sources including trade shows, industry forums, and company presentations.
Client journey: The spend analysis engagement helped the client categorize spend data with supplier level data across various categories. This helped them make informed purchase decisions. Additionally, the client implemented the solution across all categories, enabling the rollout of the sourcing strategy “from buying the best product to selecting the best supplier.”
Key questions answered in this spend analysis engagement
With the help of SpendEdge’s spend analysis engagement, the renowned processed meat manufacturer gained in-depth knowledge about their spend categories and developed effective category strategies across their manufacturing units.